HR3629-119

What This Bill Does

The End Banking for Human Traffickers Act uses financial regulation to target trafficking proceeds. Within 180 days, the Federal Financial Institutions Examination Council, consulting Treasury, the private sector, trafficking victims, at-risk advocates, and law enforcement, must review and enhance training and examination procedures so anti-money-laundering and countering-the-financing-of-terrorism programs can better detect transactions tied to severe trafficking, improve procedures for referrals to law enforcement, and decide whether financial institution requirements are sufficient. Within 270 days, the Interagency Task Force To Monitor and Combat Trafficking must report to financial-services, judiciary, banking, and judiciary committees, plus federal banking agency heads, on U.S. government and financial institution AML efforts against severe trafficking. Recommendations must include bank feedback on successful programs, victim and advocate input, changes to internal policies, procedures, controls, training, information sharing among banks and law enforcement, and possible statutory updates for emerging technologies and virtual currencies. The bill does not give the task force rulemaking power and says it should not encourage banks to deny services to trafficking victims or people not responsible for trafficking. It also amends the minimum standards for eliminating trafficking to consider whether foreign governments have frameworks to prevent financial transactions involving trafficking proceeds and are investigating, prosecuting, convicting, and sentencing people who conduct those transactions.

Who Benefits and How

Trafficking victims benefit if banks and regulators identify trafficker money flows without denying services to victims. Law enforcement agencies benefit from improved referral procedures and better financial intelligence on severe trafficking. Financial institutions benefit from clearer regulator guidance, training expectations, and best-practice sharing. Anti-trafficking advocates benefit because the bill requires consultation with victims and at-risk communities.

Who Bears the Burden and How

FFIEC examiners must review and enhance training, examination, and referral procedures within 180 days. The Interagency Task Force To Monitor and Combat Trafficking must produce a detailed report and recommendations within 270 days. Financial institutions may need to update AML controls, employee training, information sharing, and virtual-currency monitoring. Foreign governments may face greater scrutiny in trafficking rankings if they lack financial-transaction frameworks.

Key Provisions

• Requires FFIEC review of AML and CFT procedures for detecting severe trafficking transactions.
• Requires improved procedures for referring possible trafficking-related financial cases to law enforcement.
• Requires task-force recommendations on bank policies, training, information sharing, emerging technology, and virtual currency.
• Preserves services for trafficking victims and people not responsible for trafficking.
• Adds anti-trafficking financial frameworks to minimum standards for eliminating trafficking.